This week is going to be an eventful one for earnings. We’ll see reports from the big tech companies such as Alphabet Inc. (GOOGL), Amazon Inc. (AMZN), Microsoft Corp. (MSFT) and Meta Platforms Inc. (META).
According to FactSet, analysts expect the overall S&P 500 technology sector to post third-quarter earnings growth of 4.8% from the year prior, which compares to expectations for earnings growth of 0.4%.
Now, while we wait for these reports to come out, it is important to highlight some of the big news we’ve been seeing recently…
On Friday, the Treasury Department announced that the federal government posted a 2023 fiscal deficit of $1.695 trillion, which is a 23% increase over fiscal 2022. However, The Wall Street Journal reported that a $333 billion spending cut (which can be attributed to the Supreme Court cancelation of student debt loan relief) means that the real federal government budget deficit for fiscal 2023 was actually well over $2 trillion.
Another big story is the recent surge in Treasury yields. The 30-year Treasury yield broke above 5% last week, while the 10-year Treasury yield breached the 5% level for the first time in 16 years yesterday morning. The 10-year Treasury yield has now soared 160 basis points higher since mid-May – and this surge has weighed on stocks recently.
Naturally, there is a lot of economic insecurity right now that is also weighing on stocks, due to the threat of an escalating war in the Middle East, political turmoil around the world, soaring interest rates, higher energy prices, labor unrest and gobs of uncertainty.
But, as always, your best defense remains a strong offense of fundamentally superior stocks. So, in today’s Market 360, I’ll share a handful of stocks that don’t meet the criteria right now. Then I’ll share how to best find the fundamentally superior stocks that are expected to rise in the very short term.
This Week’s Ratings Changes
After taking a close look at the latest institutional buying pressure and each company’s financial health, I decided to revise my Portfolio Grader for 62 big blue chips. Of these 62 stocks, 29 stocks were downgraded from a B-rating (Buy) to a C-rating (Hold), and nine stocks were downgraded from a C-rating to a D-rating (Sell).
I’ve listed the first 10 stocks to hold below, but you can find the full list – including the stocks’ Fundamental and Quantitative Grades – here.
Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
| Ticker | Company Name | Total Grade |
|---|---|---|
| AGI | American International Group, Inc. | C |
| APH | Amphenol Corporation Class A | C |
| ATO | Atmos Energy Corporation | C |
| BCS | Barclays PLC Sponsored ADR | C |
| BGNE | BeiGene Ltd Sponsored ADR | C |
| BSBR | Banco Santander (Brasil) S.A. Sponsored ADR | C |
| CDAY | Ceridian HCM Holding, Inc. | C |
| CSX | CSX Corporation | C |
| CVE | Cenovus Energy Inc. | C |
| GD | General Dynamics Corporation | C |
Finding the Winners
As you can see, Portfolio Grader is great at screening stocks and separating the best from the worst.
But as the market conditions shift and new, innovative technology becomes readily available for us, we too must adjust our trading approach. That’s why I’ve decided to combine AI with my Portfolio Grader – and redefine what it means to be a short-term trader – in a system called the New Intelligence.
This New Intelligence is an AI system that can predict the share price of almost any stock 21 trading days into the future… with up to 82% accuracy. It looks at 120 different factors, updates overnight, which amounts to a billion data points at any given moment to show you the best recommended course of action for every single stock you search.
Essentially, the New Intelligence “teaches itself” how to accurately predict future stock prices by seeing how close it comes to its original predictions… and then adjusting its reading day by day.
It’s the idea of giving yourself a tiny advantage… and then amplifying that advantage… on one short-term move after another until you’ve built a crushingly superior portfolio.
And I am confident that using my Portfolio Grader system with the New Intelligence will be a game-changer for investors going forward. This will help investors better navigate in times of market uncertainty, especially during earnings season, when it is crucial to invest in fundamentally superior stocks.
To learn more about the New Intelligence, click here now.
Sincerely,
Louis Navellier
P.S. Imagine making a small profit, every 21 days.
And imagine making this profit with an up to 82% success rate.
Well… by using A.I., there’s now a way you could book short-term profits and make a bigger potential profit in a single year than you’d ever imagine possible. All by making just a single stock trade every week.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
American International Group, Inc. (AGI) and General Dynamics Corporation (GD)
